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Note 12 - Leases

12 Months Ended

Dec. 31, 2021

12. Leases

We lease datacenters, corporate offices, antenna tower and fiber-optic cables under operating leases. The Company does not have any leases classified as finance leases.

Our leases have remaining lease terms of 1 year to 19 years, some of which may include options to extend the leases for up to 5 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense were as follows (Dollar amounts in thousands of U.S. dollars):

	*Year Ended*		*Year Ended*
	*December 31, 2021*		*December 31, 2020*
Operating Lease Cost (leases with a total term greater than 12 months)	$	2,840	$	2,195
Short-term Lease Cost (leases with a total term of 12 months or less)		117		501
Variable Lease Cost		763		589
Total Lease Cost	$	3,720	$	3,285

Lease Cost is presented in general and administrative expenses and direct cost of revenues within our consolidated statements of operations and comprehensive income.

Information related to leases was as follows (Dollar amounts in thousands of U.S. dollars):

	*Year Ended*		*Year Ended*
Supplemental cashflow information:	*December 31, 2021*		*December 31, 2020*
Operating Lease - Operating Cash Flows (Fixed Payments)	$	5,120	$	2,332
Operating Lease - Operating Cash Flows (Liability Reduction)	$	2,468	$	1,952
New ROU Assets - Operating Leases	$	9,032	$	2,798

Supplemental balance sheet information related to leases:	*December 31, 2021*			*December 31, 2020*
Weighted Average Discount Rate		3.09	%		3.60	%
Weighted Average Remaining Lease Term	7.74 yrs			8.35 yrs

Maturity of lease liability as of December 31, 2021 (Dollar amounts in thousands of U.S. dollars):

	*December 31, 2021*
2022	$	3,514
2023		3,508
2024		2,567
2025		1,737
2026		1,174
Thereafter		4,186
Total future lease payments		16,686
Less interest		1,683
Total	$	15,003

Operating lease payments include payments under the non-cancellable term, without any additional amounts related to options to extend lease terms that are reasonably certain of being exercised.

As of December 31, 2021, we not entered into any lease agreements that have not yet commenced, and therefore are not included in the lease liability.

The Company has elected to use the single exchange rate approach when accounting for lease modifications. Under the single exchange rate approach, the entire right of use asset is revalued at the date of modification in the Company’s functional currency provided the re-measurement is not considered a separate contract or if the re-measurement is related to change the lease term or assessment of a lessee option to purchase the underlying asset being exercised.